Central security agencies have found sufficient evidence against promoter of Swan Telecom Shahid Usman Balwa, arrested in connection with 2G spectrum scam, of his alleged links with the underworld and anti-India elements in Pakistan and China.
Sources said details of Balwa's activities and evidence would soon be submitted to the Delhi High Court which is hearing a petition of the Mumbai-based businessman claiming innocence.
Balwa was arrested by CBI in Mumbai on February 7 and is currently in judicial custody.
"There are sufficient evidence of Balwa having close links with the underworld and anti-India elements in Pakistan and China," an official said.
On December 3 last year, Balwa had moved in the High Court against an official note from the Home Ministry recommending to the Foreign Investment Promotion Board (FIPB) to deny permission to Etisalat to invest money in a Chennai-based firm, citing as one of the four reasons that he shouldn't be associated with the company either as a director or in other capacity as he has "links" with the underworld.
Balwa, in his application, said the Anti-Terror Squad of Mumbai Police and the Intelligence Bureau, after a thorough inquiry, have found nothing against him and despite the report, the Centre has failed to file any affidavit on the issue.
The Home Ministry was asked by the court to file its affidavit on the plea of Balwa that the Centre's allegations that he had links with underworld don Dawood Ibrahim has harmed his business and reputation.
According to sources, the Home Ministry had objected to the proposal of the UAE-based Etisalat to increase its stake in its Indian arm, Etisalat DB, citing the Dubai company's presence in Pakistan and Afghanistan.
The CBI and IB alleged Dawood had invested large sums of money in Balwa's firm which was used by him to finance many of his business deals.
Earlier, the High Court had rejected Balwa's plea for an early disposal of his petition against MHA's findings on his alleged link with Dawood.
